Description of Tax Bills (H.R. 700, H.R. 907, H.R. 1343, H.R. 1773, H.R ...

The 14 bills described in this pamphlet have been scheduled for a public hearing on October 3, 1984, by the Subcommittee on Select Revenue Measures of the House Committee on Ways and Means.

The bills scheduled for the hearing are: H.R. 700 (relating to special deduction rule for travel and transportation expenses of construction workers); H.R. 907 (expansion of exclusion for employerprovided meals to cover certain off-premises meals); H.R. 1343 (bad debt reserves for stock savings banks); H.R. 1773 (exemption from unrelated business income tax for sales of membership lists by certain organizations); H.R. 2129 (allocation of property taxes among tenant-stockholders in cooperative housing corporations); H.R. 2686 (business development companies); H.R. 3284 (deduction for loss in value of bus operating authorities); H.R. 3388 (application of section 252 of Economic Recovery Tax Act of 1981 to certain transfers in 1973); H.R. 3528 (deduction for loss in value of freight forwarder operating authorities); H.R. 4167 (exemption from unrelated business income tax for income from certain oil and gas property); H.R. 4507 (allowance of investment tax credit to members of certain taxexempt religious organizations); H.R. 4779 (exemption from windfall profit tax for certain production); H.R. 5022 (denial of percentage depletion for income from certain lease bonus or royalties); and H.R. 5199 (applicability of farm syndicate rules of section 278(b) to inedible fruits and nuts).

The first part of the pamphlet is a summary of the bills. This is followed in the second part by a more detailed description of the bills, including present law, explanation of provisions, effective dates, and tentative revenue estimates.

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I. SUMMARY

1. H.R. 700-Messrs. Stark and Hance

Special Deduction Rule for Travel and Transportation Expenses of Construction Workers

Under present law, traveling expenses (including meals and lodging) are deductible if incurred while away from home in the pursuit of a trade or business (Code sec. 162(a)(2)); however, no deduction is allowed for personal, living, or family expenses, including the cost of commuting to and from work (sec. 262). In general, traveling expenses are deductible if incurred in connection with temporary employment and the taxpayer has a regular or principal place of business (or, in its absence, a regular place of abode) away from which the temporary employment takes place. By contrast, traveling expenses incurred in connection with employment which is considered to be of indefinite or indeterminate duration generally are not deductible.

Under the bill, a construction worker would be allowed to deduct travel and transportation expenses (including meals and lodging) for the first two years at a job site which is located more than 30 miles from his or her home, even if the employment could be considered of indefinite duration. The bill also would provide that after the worker's first two years at such a site, the determination of whether the job was temporary (so that travel and transportation expenses would still be deductible) must be made on the basis of all the facts and circumstances, subject to three special rules set forth in the bill.

The special deduction rule in the bill for construction workers would be effective on enactment.

2. H.R. 907-Mr. Vander Jagt

Expansion of Exclusion for Employer-Provided Meals to Cover Certain Off-Premises Meals

Present law excludes from gross income the value of meals furnished to an employee (or to the employee's spouse or dependents) by or on behalf of the employer for the convenience of the employer only if the meals are furnished on the employer's business premises (sec. 119). Also, under the Tax Reform Act of 1984, the value of the meals provided to an employee at a subsidized eating facility operated by the employer is excluded from income and wages as de minimis fringes if (1) the facility is located on or near the employer's business premises, (2) revenue from the facility equals or exceeds direct operating costs, and (3) in the case of certain highly compensated employees, nondiscrimination requirements are met (sec. 132(e)(2), effective January 1, 1985).

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